What Employers and Employees Need to Know

The Government of Indonesia has announced updates to the BPJS Pension Program (Jaminan Pensiun), which will take effect on March 1, 2025. These revisions impact pension benefits, contribution rates, and wage regulations. Here’s what you need to know to stay compliant and ensure smooth payroll management. 

Key Updates to Pension Benefits 

Effective March 1, 2025, the minimum and maximum monthly pension benefits will be adjusted:

• Minimum pension benefit: IDR 399,700.00 per month 

• Maximum pension benefit: IDR 4,792,300.00 per month 

  
  

Additionally, the maximum wage used as the basis for pension contribution calculations has been revised to IDR 10,547,400.00.

Revised Contribution Rates 

The contribution rates for the Pension Guarantee Program (Jaminan Pensiun) will also change starting March 1, 2025. Here’s a breakdown: 

Effective Date	Employer Contribution	Employee Contribution
Before March 1, 2025	2% (Max. IDR 200,846.00)	1% (Max. IDR 100,423.00)
From March 1, 2025	2% (Max. IDR 210,948.00)	1% (Max. IDR 105,474.00)

These contributions apply to wages (basic salary and fixed allowances) up to: 

• IDR 10,042,300.00 per month before March 1, 2025 

• IDR 10,547,400.00 per month from March 1, 2025 onwards 

  
  

Furthermore, wage adjustments will increase annually by 1% based on the national gross domestic product (GDP).

Payment Deadlines and Penalties

Employers must ensure timely payment of BPJS Ketenagakerjaan contributions, covering JK, JKK, JHT, and JP programs, by the 15th of the following month.

Failure to meet this deadline will result in a penalty of 2% per month on the unpaid contributions.

Retirement Age Adjustment

Starting January 1, 2025, the official retirement age in Indonesia will be increased to 59 years.

What This Means for Employers and Employees

These updates reinforce the government’s commitment to strengthening Indonesia’s social security framework. Employers must ensure:

• Payroll systems are updated to reflect new contribution rates and wage limits.

• Timely payments to avoid penalties.

• HR policies align with the new retirement age requirements.

For employees, these changes signify improved pension benefits and a structured increase in retirement provisions.

Final Thoughts

The BPJS Pension Program updates for 2025 emphasize financial security for Indonesia’s workforce. As these changes take effect, both employers and employees should stay informed and take proactive steps to adapt to the new regulations.

For further guidance on payroll compliance and BPJS contributions reach out to i-Admin or visit BPJS Ketenagakerjaan’s official website.